báo cáo thực tập tốt nghiệp tiếng anh VP bank trunghoanhanchinh branch address 29t1, hoang dao thuy, hanoi

GRADUATE INTERNSHIP REPORTINTERNSHIP COMPANY/INSTITUTION: VP Bank Trung Hoa Nhan Chinh Branch Address: 29T1, Hoang Dao Thuy, Hanoi Supervisor: Ph.D Ly Phuong DuyenStudent’s full name: Da

GRADUATE INTERNSHIP REPORT

INTERNSHIP COMPANY/INSTITUTION: VP Bank Trung Hoa Nhan Chinh Branch

Address: 29T1, Hoang Dao Thuy, Hanoi

Supervisor: Ph.D Ly Phuong DuyenStudent’s full name: Dao Duc AnhStudent’s ID: 11071285

Major: International BusinessClass: Ib2012B

Ha Noi, 5th March 2016

I am very grateful to the teachers at International School, especially Ph.D LyPhuong Duyen who have made the most sacrifice in term of time and energy forknowledge of banking and finance; I could build a solid foundation to apply on myfuture career

I am really very thankful to Mr Tran Trung Van – branch director for hisacceptance of my internship He has supported me during the period of collectinginformation

Besides, there are many people who supported me attentively in formulation ofthis report and without the support of them I could never be able to complete this reportsuccessfully In this respect, I am very grateful to all the officers and the staffmembers, who cooperated with me, provided me with valuable information aboutcapital mobilizing and guided at each step of my internship Their valuable advices andspecially the amicable attitude always inspired me for hard work

VIETNAM NATIONAL UNIVERSITY, HANOI

INTERNATIONAL SCHOOL

SOCIAL REPUBLIC OF VIETNAM Independence – Liberty - Happiness

Graduate Internship Evaluation

(for Supervisor)

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Student’s ID: Class: ………

Major: ………

Internship Company/Organization………

Supervisor: ……….

1 The performance of the schedule: Internship period starts from……… to ………

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2 Awareness, attitude: ………

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3 Other comments: ………

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Hanoi, ………

Supervisor

(Signature and Full name)

Table content

Chapter 1 Overview of VP-Bank

1.1 Introduction of VP-Bank

1.1.1 Historical development

VPBANK (Viet Nam Joint Stock Commercial Bank for Private Enterprises) was established under the Operating License No 0042 / NHGP of Governor State Bank of Vietnam granted August 12, 1993 with a 99-year operating period VPBank began operating under Establishment License No.1535 / QĐ-UB dated September 4, 1993 The bank developed through 4 main periods

- From 1993 to 1996: it is a beginning time without experience in management and operation as well as inability of growth control

- From 1996 to 2004: The phase of determining the keeping money emergency In

1997, the Asian money related and fiscal emergency happened, along these linesthe VP Bank need to settle inside remarkable issues as well as must resolve the troubles brought on by the emergency

- From 2004 to 2012: A stage arranged maintainable advancement in the initial four years However, by 2008, the bank kept dealing with the worldwide money related emergency in 2008 This stage had been the troublesome time of the saving money market when all is said in done and of VPBank specifically

- From 2012 to present: the recovering time after recession and continuing growth

in the future

The starting contract capital of the recently settled bank is 20 billion VND At that point as improvement requests, after few years VP Bank has over and again expanded its contract capital By 8/2006, VP Bank's charter capital achieved 500 billion VND 9/2006, VPBank is endorsed by the national bank to offer 10% of value money to a

remote key accomplice which is OCBC bank, the Singapore's biggest bank After that,

VP Bank's charter capital will increment to more than 1,000 billion VND 4/2015, VP Bank is affirmed to expand sanction capital from 6.347 billion to 7.324 billion VND

In growth process, VPBank dependably pays consideration on the development of scale and upgrade of its system in real urban areas State Bank's Governor has endorsedthe VPBank to build its charter capital from 7.324 billion to 8.444 billion under the Charter Capital Increase Plan in Resolution dated 10.02.2015 affirmed by the Annual Shareholders Meeting

From 2010 to 2015, the development rate has a sharp increase, with the exception of the lessening in 2014 Following 5 years, the capital has achieved 8.444 thousand billion VND, expanded 111.1% contrasted with 2010 It prove that VPBank has huge effort to enhance the operation throughout the years Raising capital helps the bank to improve the extension and nature of profitable resources, expand the competitiveness

of the bank and raise the bank's brand image

VPBank dependably pays consideration on grow scale and improve its system in particularly urban communities 12/1993, VPBank branch was built up in HCM City

By 11/1994, VPBank Hai Phong was set up, and presently in 7/1995, VP Bank office

in Da Nang was built up Especially in 2004, VP Bank opened 3 new branches under the approval of the national bank They are VPBank Hanoi Branch which was

independence from the Head Office, Hue Branch and Sai Gon Branch In 2005, a chain

of VP Bank offices was conceived: Can Tho Branch, Quang Ninh Branch, Vinh Phuc Branch, Thanh Xuan Branch In 2006, VP Bank set up two subsidiaries: VPBank Asset Management Company (VPBANK AMC) and VPBank Securities Company (VPBS) Today with 22 years of operations, VP Bank has raised its contracted cash-flow to 8.444 billion and added to the system to more than 200 value-based focuses, with staff of more than 7,000 employees

As a member of the group of 12 leading banks in Vietnam (G12 ( G12 ) , VP Bank is finding a way to declare the notoriety of a dynamic bank , high security and high responsibility to the social To accomplish the aspiring vision, VP Bank has executed forceful development methodology for the period 2012 - 2017 with the help of a main consulting firm McKinsey With this strategy, VPBank has development endeavors in the objective client segment, building a consolidate foundation to develop, and

effectively checking opportunities in the business sector

To plan for the development, VP Bank has directed synchronic method for assemble bank’s framework VPBank try to be a market leader in the use of high technologies in product, service and working frameworks Alongside the effective working of solid corporate social environment, the center HR administration has been created

effectively at VP Bank In addition, VPBank has bit by bit built up an arrangement of autonomous and particular risk management to catch worldwide principles and adjust

to the business system of the Bank In parallel with the following of the global

practices of corporate administration, VP Bank always enhance transpiration and clearly by restructuring the organization

1.1.2 Organizational structure

Figure 1.1

Through each stage about development, VP bank made transformation in the

authoritative structure to adapt the recent situation The Board of Directors work for Shareholders who have capital proportion in the bank It is a highest organ in this organization that have power in making decision in the way of development They will elect a General Manager and Board of Management who responsible for all banking activities

Through the chart, the organizational structure of VP bank is quietly strict that include functional department to run all activities smoothly

- Shareholders Meeting: is the highest authority of VP Bank It can decide the orientation of VP Bank, organizational structure, controlling the Board of Director, Supervisory Board, and Credit Committee, charter capital,

purchasing and saling of shares of the bank; restructuring or dissolution of the bank; establishing subsidiaries; financial matters of VP Bank

- Board of Directors is the management department of the bank; has the right

to represent the bank in order to resolve all matters relating to the

achievement and interests of the bank, except for matters under the authority

of the Shareholders Meeting VP Bank's Board of Directors has a minimum

of 5 members and a maximum of 11 members At least half of the members must be non-executive and independent members

- Supervisory Board is responsible for examining the accuracy and legality in the management, business operations, accounting records and financial statements; report to the Board of Director the results of operation; consult toBoard of Director before submitting the reports, decisions and petitions to the Shareholders Meeting VP Bank's Supervisory Board must have at least 3members, no limit on maximum, and at least half of the members are not in other positions at VP Bank and other businesses simultaneously

- General Manager supervises operating daily business of VP Bank,

implementing the decisions of the Shareholders Meeting, Board of Directors

as well as the other business plans of VP Bank It is subject to the

supervision of the Board of Director and the Supervisory Board, responsible

to the Board of Director and to the law for the implementation of the rights and duties assigned Assistants for the General Manager are the deputy general managers, chief accountant, heads of departments at the head office, branch managers and other titles

1.1.3 Main activities of VP Bank

- Lend short-term, medium-term and long-term loans to the financial

organizations and residents from the availability of bank funds

- Mobilize short-term, medium-term and long-term capital in term of deposits, demand deposits from the financial firms and residents

- Borrow money from the central bank and other credit institutions

- Contribute capital, form joint ventures and purchase or sell shares under the current law

- Trade in foreign exchange; perform international payments; mobilize funds from abroad and perform banking services related to foreign countries when the central bank allows

- Discount commercial paper, bonds and other valuable vouchers Provide

transactional services and other banking services as stipulated by the State Bank

of Vietnam

- Intermediary for payment and transaction

1.2 Overview of VPBank Trung Hoa Nhan Chinh Branch

1.2.1 Historical development

Transactional office VP bank Trung Hoa Nhan Chinh have been secured once

01/02/2007 under the management of the level I VPBank Kinh Do It is placed at 1st floor of 29T1 tower in Hoang Dao Thuy Street, Cau Giay District VPBank Trung Hoa Nhan Chinh created for the mission to extend those zone of operation, serving clients

in the district as well as assisting the customer in transactions

After five year, 17/01/2012 VP Trung Hoa - Nhan Chinh authoritatively

differentiated from extension Kinh Do, created an autonomous branch which

connected the new model about transactional purpose called “Conversion” of VPBank This may be an transaction model which bank representatives will serve customers contrast to traditional way Furthermore, the new approach focus on intimacy and consultation As a result, VPBank Trung Hoa - Nhan Chinh has the loyalty of many clients owing to young and energetic employees in banking system

1.2.2 Organizational structure

Figure 1.2: Organizational structure of VPBank THNC

Branch Director

personal customer department customer service department

Accounting division Transactional divison

small and medium enterprise department

Gather and store documents and papers relating to the clients such as operations, production and business of customers; regularly supervise customer activities and maintain close relationships with customers

Contact and consult the customer; suggest expert advice on products and services according to customer’s requirements; introduce new products and services if the customers is potential

Conduct market research; figure out customer’s needs, focus on small and medium enterprises

Receive the application of loans, guarantees or foreign currency trading from

customers; appraise and grant proposals based on consideration and settlement

Responsible for the legal of credit granting activities related to the clients

Regularly value clients in order to estimate how much the bank can support for this plan or project of corporation; transfer the record of questionable loans to VPBank Asset Management Corporation (AMC) in the higher authorities for handling

according to current law

Provide various products and services related to enterprise customers like cash

management, trade finance, derivative trading…

Analyze, synthesize and evaluate the activities of the branch periodically

b Customer service department

 Transactional Division

 Function:

- Welcome customers; introduce items as well as benefits of the bank

- Collect information from customers

 Mission:

- Activities related to saving account like deposit, withdrawals, interest payment

- Guide customers how to use the products

- Open the bank account or some type of cards

- Carry out daily transactions such as money transfer, check issuance, withdraw, deposit, etc

- Provide information about bank account; send debit notes, credit notes, account statements for customers in accordance with the jurisdiction rules

- Implement exchange of currency for customers according to the principle of Central Bank and of VP Bank

 Accounting division

- Pay salaries and compensation for employees monthly

- Manage and supervise the fixed assets and internal expense

- Implement the accounting for mobilizing capital, lending and other business operations

- Estimate and calculate the income, expenses, balance of receiving and paying, take advantage bank’s resource and capital in investment

- Make a plan for financing for future as well as the financial report and balance sheet based on current principles

- Collaborate with other departments to collect and manage documents and data

Basically, it is similar SME Department with the products and services focus on

personal or household customers of middle class or high class

1.2.3 Main activities and products

Trung Hoa Nhan Chinh branch has main activities and products related to the personal and SME customers Large number of transactions related to larger customers like corporate or group of firms will be centralized at the headquarters

a Small and Medium Enterprises (SMEs)

- SME Smart Credit: is introduced in order to supplement working capital for small enterprises’ business, production activities as well as purchase of fixed assets This product is desired to be a smart and excellent solution for the

operation

- Business financing loan to SME customers secured 100 % by real estate

- Corporate Account Overdraft: it is a optimal solution to face the unforeseen demand Firms can be support capital in short term in manufacturing

- Syndicated loans: VP bank make alliance with other credit institution in order to extend the loans for customers in which VP Bank or others become arrangers

- Guarantee: VP Bank offer some kind of guarantee in different cases Tender guarantee, payment guarantee, import-export tax payment guarantees,

performance guarantee, etc can help the firms to increase the trust and prestige during doing business in Vietnam or overseas

- Some traditional loans: Installment working capital Loans, Ordinary medium and long - term loans

- VPBiz debit card/ credit card

- Cash pooling: VPBank provides this optimal financial management service to help customers automatically transfer money between accounts at VPBank to concentrate financial resources on the parent company for maximum

profitability and control of receipts and payments of member units

- Periodic transfer: based on the authority from customers, VP bank will transfer

to beneficiary a determined sum of money that ensure the maximum pre-definedbalance on specific day of month

 Derivatives products

- Foreign exchange forward contract:

- Foreign exchange spot contract

- Foreign exchange swap contract

- Foreign exchange derivatives and options

- Regular saving account with interest paid at maturity

- Saving account with interest paid in advance is suitable for people who want to cover their unexpected expense

- Overnight saving

- Prosperity saving with floating interest rate

 Personal service

- Receive money via Western Union online

- Payroll service: firms can pay salaries to their employees automatically based onperiod

- Domestic/ International remittance service

- Foreign exchange services

- Deposit, withdrawal services for VPBank Sercurities account

 Loans

- Household business loans

- Personal overdraft loans

- Installment loans financing working capital for household business

- Personal home loans

- Personal loans for house construction and renovation

 Card services

VPBank offers many different type of card that can suitable for various of people

- VPBank Stepup credit card

- VPLady credit card

- Virtual payment card

- Mc2 credit master card

- Etc

 Insurance

VPBank offers two main type of insurance:

- Insurance for women – VP Lady Care

- Comprehensive Medical Care Insurance – VP Medi care

1.2.4 SWOT analysis of branch

a Strengths:

- The branch is located at good place in Hoang Dao Thuy Street Besides

convenient transportation, it also in place where high income people live around

as well as many restaurants or services are operating

- The branch has high skill and experienced employees in banking who can apply the modern banking application The candidates need to be through the

professional recruitment process with strict and clarified criteria if they want to

be hired

- The products and services are diversified for different clients such as domestics

or international residents, personal or SMEs, etc "VP Bank has been

implementing a wide range of payment solutions, investment and new lending flexibility and added convenience to suit the needs of customers" - Mr Kalidas Ghose said

- Applying the latest technologies can assist the bankers to manage and support the operation faster and safer The customers also can use banking services everywhere and every time Through IT infrastructure, the bank has channel for marketing and distributing products leading to approach more potential

customers

b Weakness

- The THNC branch is official independence branch in 3 years so the structure is still quite simple Some specialized departments like international payment and remittance department, debt recovery office have not set up yet, it leads low working performance of whole branch

- The health of finance is not good in some cases The branch do no have

sufficient capital to support demand of firms

- Although the branch offers many kinds of product and service, the total revenue still depends on the credit and saving deposit from residents The marketing channels may be in trouble with introducing and attracting customers

c Opportunities

- VP bank focus on individual customers and SMEs, while two sectors remain thegrowth rate in next few years The branch can continue exploiting this

segmentation and improving the customer care

- International integration can help the bank to run operation more professional, specialize the product and service, manage risk and credit effectively as well as take more advantage of capital In addition, VP Bank can approach newest technologies in banking systems to create and support for new type of products Cooperating to other banks opens opportunities to exchange, international cooperation between VP Bank and commercial banks in monetary operations, proposed solutions to strengthen supervision and risk prevention, thereby

enhancing the prestige and status of the system VN banks in international

transactions

- Economic integration enlists facilitate capital, technology and staff training, promotion of comparative advantages of the VP to keep up the international competition requirements, expand overseas markets

- Collaborating foreign firms allows foreign banks to participate in all the bankingservices in Vietnam In this situation, the bank has to force to dig deeper

specialization banking, bank management, asset management liabilities - assets

Is there & risk management, improved credit quality, enhancing capital

efficiency, service As a result, VP Bank should promote strength is its retail banking more, on the basis of existing customer loyalty

d Threats

- Other competitors also try to improve their own systems and collaborate with each other, that can increase capable of competing in market The branch will also face to strong competitive by new branch of others bank in same place

- Domestic legal systems, market institutions are incomplete, inconsistent and consistency, inadequate compared to the requirements of international

integration of banking Economic integration, increased international

transactions and the risk capital of the banking system, while the management mechanism and information system of banking supervision is still very

primitive, is not consistent with international practice

- The changes of technology caused the technology risk is unavoidable However,

in the banking sector, only a small change in technical systems will change gained profit many times

- The issue is a top concern of human resources and incentives to work in the current bank Brain drain problem is unavoidable when open integration VP takes the salary policy and reasonable remuneration to attract and retain good employees

Chapter 2 Research of operation of VP Bank

2.1 Some main activities

as well as POS to increase ability of using card VP bank also create network payment with other business units like restaurants, business centers, hospital… can expand the card acknowledged units in the city area, upgrading card installment operations

Table 2.1: New issued cards of VPBank Trung Hoa Nhan Chinh 2012-2015

Number

Proportion

Number

Proportion

Number

Proportion

Number

(Source: Annual report of VPBank)

According the chart, issued card in branch increased gradually from 2012 to 2014

The branch issued 5400 domestic debit cards in 2004 which is double increase from

2012 with 2185 cards International debit card had high growth in 2013 with 654 cards from 2012, but in 2014 it just has 7,3% positive changes as 2013 Although credit card occurs small proportion, it quietly sharp increase about 260% compared to 2012

Generally, issuing cards is one of many other activities of bank, however, it can reflectpartly the effective of direction of bank in sales, marketing By researching anddiversifying the market segment in right way, the bank can approach more type ofcustomers From 2013 to 2014, VPBank differentiate a few new cards for example,international prepaid card VP Passport, VPBank Visa SmartCash, credit card VP Step-

up, VP Lady Besides, Visa VP woman had been honored “Banking Product Vietnam2014” by organization Global Banking & Finance Review (GBAF) of England

2.1.2 International payment activities